China Beats Japan in Purchasing Power

From Financial Times:

China has passed Japan to become the world’s second-largest economy, while India is in fourth place, the World Bank confirmed on Friday, as it unveiled a report examining the relative purchasing power of global economies. The report found that developing economies’ share of total global output had risen significantly in the past decade, as nations such as India and China had grown far faster than their richer counterparts.

As a result, developing nations accounted for 41 per cent of $58,600bn (€37,000bn, £29,600bn) in total global economic output in 2006 – up from 36 per cent in 2000. “When we measure economies on a comparable global scale, the growing clout of developing countries comes into sharp relief,” said Alan Gelb, the World Bank’s acting chief economist.